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The four attributes that make the Beta distribution be chosen as representing distribution of times for PERT analysis are:
- It is uni-modal
- It has finite limits
- Can assume flexible shapes
- There is goodness of estimates of expected duration and variance
Wilfykil answered the question on February 20, 2019 at 07:37
- Explain the four different methods or approaches for organizing and displaying project information(Solved)
Explain the four different methods or approaches for organizing and displaying project information
Date posted: February 20, 2019. Answers (1)
- A small construction project involves the following activities:
Required:
i) Determine the shortest time and associated cost to finish this project.
ii) If a penalty of Sh.4,500 must...(Solved)
A small construction project involves the following activities:
Required:
i) Determine the shortest time and associated cost to finish this project.
ii) If a penalty of Sh.4,500 must be charged for every day beyond 12 days, what is the most economical time for completing the project?
Date posted: February 20, 2019. Answers (1)
- Consider the following project network and activity times (in weeks)
Required:
i) How long will it take to finish this project?
ii) Can activity D be delayed without...(Solved)
Consider the following project network and activity times (in weeks)
Required:
i) How long will it take to finish this project?
ii)Can activity D be delayed without delaying the entire project? If so, by how many weeks?
iii)What is the schedule for activity E?
Date posted: February 20, 2019. Answers (1)
- Explain the following terms used in network analysis:
i) Network planning;
ii) Activities;
iii) Events;
iv) Critical path;
v) Float.(Solved)
Explain the following terms used in network analysis:
i) Network planning;
ii) Activities;
iii) Events;
iv) Critical path;
v) Float.
Date posted: February 20, 2019. Answers (1)
- Consider a project which has been modeled as follows:
Required:
a) Determine the project?s expected completion time and its critical path.
b) Can activities E and G be...(Solved)
Consider a project which has been modeled as follows:
Required:
a) Determine the project‟s expected completion time and its critical path.
b) Can activities E and G be performed at the same time without delaying the completion of the project?
c) Can one person perform activities A, G and I without delaying the project?
d) By how much time can activities G and L be delayed without delaying the entire project?
e) By how much time would the project be delayed if activity G were delayed by 3 hours and activity L by 4 hours? Explain.
Date posted: February 20, 2019. Answers (1)
- Consider the cost-time estimates for the product development project as given in the table below.(Solved)
Consider the cost-time estimates for the product development project as given in the table below.
Indirect cost is made up of two components: Fixed cost of $5,000 and a variable cost of $1,000 per week of elapsed time. Also, for each week the project exceeds 17 weeks, an opportunity cost of $2,000 per week is assessed.
Construct a time chart for the minimum total cost schedule.
Date posted: February 20, 2019. Answers (1)
- Consider the simplified scenario for the development of a consumer product through the market test phase
shown in the table below.(Solved)
Consider the simplified scenario for the development of a consumer product through the market test phase
shown in the table below.
a) Draw the network for this project.
b) Calculate the slacks and interpret their meaning.
c) Determine the critical path and interpret its meaning.
d) Construct a time chart and identify scheduling flexibilities
Date posted: February 20, 2019. Answers (1)
- Consider the two person zero sum game between players A and B given by the following pay-off table:(Solved)
Consider the two person zero sum game between players A and B given by the following pay-off table:
Required:
i) Using the maximin and minimax values, is it possible to determine the value of the game? Give
reasons.
ii) Use graphical methods to determine optimal mixed strategy for player A and determine the
value of the game.
Date posted: January 23, 2019. Answers (1)
- Define the following terms used in game theory:
i) Dominance.
ii) Saddle point
iii) Mixed strategy
iv) Value of the game(Solved)
Define the following terms used in game theory:
i) Dominance.
ii) Saddle point
iii) Mixed strategy
iv) Value of the game
Date posted: January 23, 2019. Answers (1)
- Explain the following terms as used in decision analysis.
a) Decision making under risk versus uncertainty.
b) Decision trees versus probability trees.
c) Minimax versus maximax criterion.
d) Pure...(Solved)
Explain the following terms as used in decision analysis.
a) Decision making under risk versus uncertainty.
b) Decision trees versus probability trees.
c) Minimax versus maximax criterion.
d) Pure strategy versus mixed strategy games.
e) Games with more than two persons versus non zero-sum games
Date posted: January 23, 2019. Answers (1)
- An urban cable television company is investigating the installation of cable TV system in urban areas. The engineering department estimates the cost of the system...(Solved)
An urban cable television company is investigating the installation of cable TV system in urban areas. The engineering department estimates the cost of the system (in present worth Sh.) to be Sh. 7 million. The sales department has investigated four pricing plans. For each pricing plan, the marketing division has estimated the revenue per household in present worth Sh. to be:
Date posted: January 23, 2019. Answers (1)
- A trust officer for a major banking institution is planning the investment of a USD 1 million family trust for the coming year. The trust...(Solved)
A trust officer for a major banking institution is planning the investment of a USD 1 million family trust for the
coming year. The trust officer has identified a portfolio of stocks and another group of bonds that might be
selected for investment. The family trust can be invested in stocks or bonds exclusively, or a mix of the two.
This trust officer prefers to divide the funds in increments of 10 percent; that is, the family trust may be split
100 percent stocks /0 percent bonds, 90 percent stocks /10 percent bonds, 80 percent stocks /20 percent
bonds, and so on.
The trust officer has evaluated the relationship between the yields on the different investments and general
economic conditions. Her judgment is as follows:
1) If the next year is characterized by solid growth in the economy, bonds will yield 12 percent and stocks
20 percent.
2) If the next year is characterized by inflation, bonds will yield 18 percent and stocks 10 percent.
3) If the next year is characterized by stagnation, bonds will yield 12 percent and stocks 8 percent.
a) Formulate a payoff table where payoffs represent the annual yield, in dollars, associated with the
different investment strategies and the occurrence of various economic conditions
b) Determine the optimal investment strategy using the max-max, max-min, Hurwicz (
),
equally likely, and regret criteria.
c) Suppose that a leading economic forecasting firm projects P(solid growth)= 0.4, P(inflation)=0.25,
and P (stagnation)= 0.35. Use the expected value criterion to select the appropriate strategy.
d) What is the expected value with perfect information?
Date posted: January 23, 2019. Answers (1)
- The following table is a payoff table for a particular venture.
(Solved)
The following table is a payoff table for a particular venture.
Required:
a) Determine the decision alternative that maximizes expected payoff.
b) Determine expected value under certainty.
c) What is the expected value of perfect information?
Date posted: January 23, 2019. Answers (1)
- The following is a payoff table for a particular venture.(Solved)
The following is a payoff table for a particular venture.
Determine the optimal decision using:
a) Max-min criterion.
b) Max-max criterion.
c) Min-max regret criterion.
d) Maximum expected payoff (assuming equal likelihood of states of nature).
Date posted: January 23, 2019. Answers (1)
- Downtown Motors Company (DMC), has hired a market services firm to develop an advertising strategy
for promoting Downtown?s used car sales. The marketing firm has recommended...(Solved)
Downtown Motors Company (DMC), has hired a market services firm to develop an advertising strategy
for promoting Downtown's used car sales. The marketing firm has recommended that
Downtown uses pot announcements on both television and radio as the advertising media for the
proposed promotional campaign. Advertising strategy guidelines are expressed as follows:
1. Use at least 30 announcements for combined television and radio coverage.
2. Do not use more than 25 radio announcements.
3. The number of radio announcements cannot be less than the number of television announcements. The
television station has quoted a cost of Sh.1,200 per spot announcement and the radio station has quoted a
cost of Sh.300 per spot announcement. Downtown‟s advertising budget has been set at
Sh.25,500. The marketing services firm has rated the various advertising media in terms of audience
coverage and recall power of the advertisement. For Downtown‟s media alternatives, the
television announcement is rated at 600 and the radio announcement is rated at 200.
Required:
Perform an analysis of advertising strategy for DMC. Include a consideration of the following items:
i) Determine the optimal number of television and radio spot announcements.
ii) Explain the relative merits of each advertising medium.
iii) Determine the rating that would be necessary in order to increase the number of television spots.
iv) Which restrictions placed on the advertising strategy would DMC want to consider relaxing or
altering? Why?
v) What is the use of any possible increase in the advertising budget?
Date posted: January 23, 2019. Answers (1)
- Briefly and clearly compare and contrast between a transportation problem and an assignment problem
as used in linear programming.(Solved)
Briefly and clearly compare and contrast between a transportation problem and an assignment problem
as used in linear programming.
Date posted: January 23, 2019. Answers (1)
- The Copper Wire Company is a manufacturer of copper wires. Ben Muturi, the company executive
director has just received a memo from Stella Musingo, one of...(Solved)
The Copper Wire Company is a manufacturer of copper wires. Ben Muturi, the company executive
director has just received a memo from Stella Musingo, one of his young engineers. Stella informs Ben
that; with the forthcoming purchase of new blast furnace to produce copper, it seems an opportune time
to completely review their method of producing copper. Currently, a variety of ingredients are entered
into the blast furnace in order to produce copper. The production manager, Joe Kiilu makes the
decision, as he has for the last 25 years, on the variety of ingredients. It is not an easy decision. The company wants to keep the costs of producing copper down
The ingredients into the blast furnace have to interact to produce copper. Furthermore, the chemical
reactions have to be such that the copper produced is viscous enough to flow out of the furnace.
Stella has identified the problems with the current method. First, Joe is retiring in six months and there
is no obvious replacement to him. Second, the company never knows if they are minimizing the
production costs. Third, sometimes the furnace does not freeze-up. Stella believes that there is a
quantitative technique, which can be used to decide what ingredients to enter in to the furnace. Once the model has been developed, special skills such as Joe‟s will no longer be required. The
company will also be confident that they are minimizing costs. In addition, they would be able to
eliminate the furnace freeze-up problem
Required:
i) What potential quantitative technique can be used to solve this problem? Why?
ii) Specify the general formulation of the quantitative technique. (Be sure to clearly spell out the
meaning of all the variables or parameters used)
iii) If a group were formed to develop an appropriate model, what organizational personnel should be
included? What specific skills would each provide?
Date posted: January 23, 2019. Answers (1)
- Explain and graphically show the following terms as used in linear programming:
i) Alternate optimal or multiple solutions
ii) Unbound solutions
iii) Infeasible solutions(Solved)
Explain and graphically show the following terms as used in linear programming:
i) Alternate optimal or multiple solutions
ii) Unbound solutions
iii) Infeasible solutions
Date posted: January 23, 2019. Answers (1)
- Kenya Canning Transport is to move goods from three factories situated in Thika, Naivasha and
Machakos. These goods will be distributed to Nairobi, Mombasa and Kisumu....(Solved)
Kenya Canning Transport is to move goods from three factories situated in Thika, Naivasha and
Machakos. These goods will be distributed to Nairobi, Mombasa and Kisumu. Information about the
units (in kilograms) to be moved is given below:
Required:
i) Draw a network diagram for the above problem
ii) Set a linear programming model for this problem
NOTE: Do not solve.
Date posted: January 14, 2019. Answers (1)
- Explain the following terms as used in the context of linear programming:
i) Linear program
ii) Basic feasible solution
iii) Degeneracy
iv) Alternative optimal solutions
v) Redundant constraints
vi) Range of...(Solved)
Explain the following terms as used in the context of linear programming:
i) Linear program
ii) Basic feasible solution
iii) Degeneracy
iv) Alternative optimal solutions
v) Redundant constraints
vi) Range of optimality
vii) Artificial variables
viii) Reduced cost
ix) Dummy destination
x) Assignment problem
Date posted: January 14, 2019. Answers (1)